Here’s the deal: The Government’s JobKeepers wage subsidy package will ensure eligible employers are paid $1,500 per fortnight per eligible employee from 30 March 2020, for a maximum of six months. Eligible employees will receive this payment (before tax) from their employers. Importantly, you will get this payment as a minimum regardless of how much or little you were earning. Employers can also choose to top it up.

The good news is that many, many people will be eligible if they have lost work because of the Covid-19 pandemic – it has actually been described as one of the most generous wage subsidy packages offered in the world. However, there is set criteria so it’s important to understand the facts.

We know it can be overwhelming to understand how it applies to you, so we have put together a summary of what we know so far, and what the next steps are for you. We are busy responding to client’s questions about their particular circumstance, but we hope this helps break down the key points:

JobKeepers key eligibility requirements:

  • Employers including companies, partnerships, trusts, sole traders, not-for-profits and charities are eligible. If your business turnover is under $1bn, you must be able to prove a loss of 30% or more revenue compared to a comparable period a year ago due to Covid-19. If your business has a turnover of more than $1bn, you must have lost 50% or more revenue. At this point, the ATO has not specified the methods in which a business can prove loss of revenue.
  • Employees that were employed by an eligible employer at 1 March 2020 are eligible. This means if you have since been laid off, you can still claim.
  • Full-time, part-time, or long-term casuals employed on a regular basis for longer than 12 months as at 1 March 2020 are eligible. For example, if you were only in employment on a casual basis over Summer, you won’t be eligible.
  • You must be at least 16 years old
  • You are an Australian Citizen OR

– hold an Australian permanent resident visa,

– a protected special category visa,

– a non-protected special category visa who has been residing continually in Australia for 10 years or more,

– a New Zealander on a special category (subclass 444) visa.

Other visas are being considered, however this is the list to date.

What you should do now:

 If you are an employer, or self-employed, you must register your intention to apply on the ATO website. Visit the ATO website here to enter your details and they will contact you on updates and the eligibility process.

A useful factsheet for employers has been uploaded to the downloads section of the Taxpro website for further information. We will also be keeping you updated with any further information so make sure you follow us on Facebook, Twitter and search Taxpro Australia on Linked IN.